Coverdell ESA

(Education Savings Account)

Invest in a child's future

  • Save for kindergarten through graduate school
  • Earnings are tax-deferred
  • Withdrawals are tax-free for qualified educational expenses

up to $2,000/year

annual contributions


average annual costs for attending an in-state public college1

Features of a Coverdell ESA

Eligibility information

Anyone with earned income that doesn't exceed income limits (under $110K for single filers and under $220K for joint filers) is eligible to contribute to a Coverdell ESA

Tax benefits

The plan offers federal tax-free withdrawals on qualified education expenses

A full range of investments

Participants’ portfolios can include stocks, ETFs, bonds, mutual funds, and options

No annual fees and no account minimums

Transaction fees, fund expenses, brokerage commissions, and service fees may apply

Trade more, pay less

With E*TRADE from Morgan Stanley, you pay $0 commissions for online US-listed stock, ETF, mutual fund, and options trades. Here’s a quick overview of our clear, competitive per-trade pricing.1

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